Just curious, you own your own business and buy say a $60,000 truck. 1/2ton, 3/4ton, etc. What percentage, or amount of that $60,000 does a business owner get to write off? There are a couple local business owners that are in a new truck every year (one even has a wrapped bass boat with his logo), and I figured there must be a pretty significant benefit.

Search and ye will find.

https://duckduckgo.com/?q=business+vehicle+tax+breaks&t=ipad&ia=web

Here's a question- where's my fugging refund???

Oh, I know, I know! Same place as mine!

Business vehicles are business expenses, and as such both the operating expenses and depreciation are fully tax deductible.

If a vehicle is also used for personal use, only the portion of the expenses and depreciation related to the business use are deductible. So if 20% of the use is personal, only 80% of operating expense and depreciation is tax deductible. The IRS appreciates proper documentation on the business use of a vehicle.

It’s important to note that this is a deduction, not a credit. So if you are in a 22% tax bracket, your cost reduction is only only 22%: 78% comes out of your pocketbook. But many people will spend tens of thousands of dollars to save a few thousand on taxes “because it’s deductible”.

Waiting on mine as well. They sure seem to be dragging their feet!!

Deduction for a small business owner means paying for it with pre-tax dollars. So, if they are in the top marginal tax bracket, they are paying 60-65% cost when factoring in taxes.

Depends on how the business is structured.

Sole proprietorship. A sole proprietorship is easy to form and gives you complete control of your business. ...

Partnership. Partnerships are the simplest structure for two or more people to own a business together. ...

Limited liability company (LLC) ...

Corporation. ...

Cooperative.

How do you figure? The top Federal income tax bracket is 37% for 2021, starting at over $600 K AGI. No FICA at that level (unless you are a tax moron), So how do you get to 60%?


Your comment IS a perfect illustration of how people make irrational decisions when it comes to taxes.

You can easily get close to 50% when you consider state and local income taxes and medicare taxes in some states.

I agree with you that some small business owners let the tax tail wag the dog often. To me it is a lot easier to just write off the business miles on a personally owned vehicle. You also have to account for personal miles driven on any business vehicle. I'm sure on the specifics but if you are using the vehicle primarily for personal use but it is owned by the business, the IRS is not going to look favorably on it.

Continue typing on that keyboard Warrior. I'll keep building businesses.

I think you can get to 50% in some localities. Say 24% Fed, 6% state and 15% Self Employment Taxes, and you're at 45% (my case). Add some New York or Cali loczl taxes, and 50% is possible.

But you still have to pay for the other 50%.




LOL! You go, Tiger!

100% the first year if you want.

Kent

Any truck, van or suv with a min gvwr of 6,000lbs.

Section 179. That Cadillac Escalade their old ladies driving with the company logo in a rear window.

I drove two hours on a Friday evening to grab a skid steer on Dec. 28th three years ago…. Lots of last minute “oh [bleep] I need a write off” purchases in late December.